In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Row House franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Row House franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Row House franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned Row House outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of Row House’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 total revenue, estimated royalty, estimated marketing fund contribution, cost of sales – third-party vendors, labor expense, bank service fees, merchant account services, office supplies, general supplies, cleaning, computer and Internet expenses, rent, repairs and maintenance, security, insurance premiums, towel service, utilities, advertising/promotion, licensing, total cost of certain operating expenses, and total revenue less certain operating expenses for the one Row House Studio that was (a) open for the entirety of the Measurement Period, and (b) operated from a standalone/dedicated space utilizing Row House’s Marks and System (the “Disclosed Studio”)

Section I – Background Information

12 Things You Need to Know About the Row House Franchise

Opens First International Studio in Canada

1.  In mid-March 2019, Row House announced its first international studio development in Canada. As the demand for unique, boutique fitness concepts grows in the country, the brand is well-positioned to succeed with its efficient and effective rowing workouts. The inaugural Canadian location was set to debut in Toronto, with a target opening date in the summer of 2019.

2.  At the time of the announcement, Row House only had 16 locations open and 200 territories sold in the United States and was on track to have over 100 studios open by the end of 2019. The company’s extensive domestic growth and success have led Row House to seek out international markets for expansion.

3.  Ramon Castillon, president of Row House, said, “Demand for this groundbreaking concept is incredibly high right now, so in Canada, we expect to see a trajectory of growth similar to what has occurred in the United States. We’re confident that our neighbors to the north will fully embrace the camaraderie, inclusivity and total-body results that Row House offers.”

4.  The Toronto studio is owned and operated by local entrepreneurs Steven and Elena Gliosca. Steven has worked in IT for 20 years, developing startups in Eastern Canada, while Elena is the owner of a local portrait photography studio. They were immediately hooked on the Row House workout and strong sense of community after visiting one of the brand’s New York locations.

5.  According to Elena, “We are excited to bring the indoor rowing revolution to Canada with our Toronto studio. As our city’s busy fitness scene continues to shift toward boutique offerings, we know that the population is going to fall in love with this well-balanced, structured and efficient workout.”

Signs 200th Franchise Agreement

6.  At the beginning of March 2019, Row House celebrated a major milestone with the signing of the brand’s 200th franchise agreement. This accomplishment falls right in line with the brand’s overarching goal to open more than 100 studio locations each year through 2022. The recently signed agreements will bring new locations to states such as Arizona, Georgia, Florida, Maryland, Colorado, and California, where over 20 new studios are planned.

7.  According to Ramon Castillon, president of Row House, “We have been extremely pleased with the growth of Row House in its first year, and with these recently signed deals, this unstoppable momentum will continue for the next few years. Row House stands out in the crowded boutique fitness space with its fresh, high-energy, low-impact workouts, and is leading the way as the number one indoor rowing experience on the market. We are excited to continue changing lives with this revolutionary fitness concept.”

8.  To continue its rapid expansion, Row House is actively seeking qualified franchise partners. Headquartered in Irvine, California, Row House is backed by Xponential Fitness, a powerhouse curator of leading boutique fitness brands.

9.  The Row House franchise opportunity offers potential franchisees the opportunity to capitalize on an emerging fitness market across all 50 states. With a total investment of $257,700 to $400,800, Row House provides a sound business opportunity along with a wealth of support, infrastructure, and knowledge from the Xponential Fitness team.

Company History

10.  Row House was founded in 2014 by husband and wife Eric Frohlich and Debra Strougo, in the Columbus Circle neighborhood of New York City. Frolich and Strougo came up with the concept of Row House, which features rowing machines, after searching for a workout that two individuals with varying fitness levels could do together. They eventually developed the Row House workout, which gives people of all different shapes, sizes, and abilities an efficient and effective workout.

11.  Within a few years, Row House grew to a few additional locations around New York City. In early 2018, Row House was acquired by Xponential Fitness, the holding entity that curates boutique fitness brands including Club Pilates, CycleBar, StretchLab, Pure Barre, YogaSix, AKT, and STRIDE. Under the leadership of Xponential Fitness, Row House began franchising and there are now locations around the United States and most recently in Canada.

Entrepreneur’s Franchise 500

12.  Row House did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Row House franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Row House’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2016

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2017

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2018

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• In this Item 19, Row House discloses the average “Gross Sales” generated from January 1, 2018 through December 31, 2018 (the “Measurement Period”), as well as certain operating costs and expenses incurred over that time period, by the one Studio that was (a) open for the entirety of the Measurement Period, and (b) operated from a standalone/dedicated space utilizing Row House’s Marks and System (the “Disclosed Studio”).

• Row House excluded the one other Studio that was open throughout the Measurement Period on the grounds that the Studio is located in a “shared space” with another business that is not related to the System which does not accurately reflect Row House’s current business model.

• The Item 19 disclosures are based on reports provided to Row House by the Disclosed Studio. Row House and the owner of the Disclosed Studio have an agreement in place to enter into a Franchise Agreement that will govern its operations moving forward.

• Accordingly, the financial performance representations contained in this Item 19 are historical representations based on past performance of the Disclosed Studio. The following representations are based on monthly profit and loss reports provided by the owners of the Disclosed Studio.

• One Studio earned these amounts. Your individual results may differ. There is no assurance that you’ll sell as much.